NFU Mutual to double bonuses for GI customers

by Gill Montia

Story link: NFU Mutual to double bonuses for GI customers

The National Farmers Union Mutual Insurance Society (NFU Mutual) has announced that in 2010, it will be doubling the Mutual Bonus paid to its 870,000 general insurance customers.

The enhanced windfall will come during the group’s Centenary year and apply to all general insurance renewals, including motor, home, business, and horse cover.

According to the insurer’s group chief executive, Lindsay Sinclair, almost 95% of general insurance customers renew their policies with NFU Mutual annually.

Next year, customers will qualify for premium discounts of between 12% and 20%, according to the length of time a policy has been in force.

The maximum discount will be applied on the 5th consecutive renewal.

This year, the Society plans to return of £85 million to members renewing their policies.

NFU Mutual has around 300 offices located in rural towns and villages throughout the UK and recently upgraded its billing and collection methods.

It now operates with Guidewire’s web-based single-system solution, which should reduce costs by removing the need for manual processes and at the same time simplify the management of agents’ commissions.